In this case study, we would go through the marketing strategies of one of the most successful companies of India and it’s none other than Reliance Industries Limited.
In 1960, Dhirubhai Ambani formed Reliance Industries Limited in Mumbai, Maharashtra with a dream of making it the largest company in India. Since then, the organisation has grown and diversified itself across different industries and sectors over all these years.
As of 2020, it is India’s largest private sector company and is ranked #96 on the list of Fortune 500 companies.
This case study focuses on Reliance Industries, Jio and its Retail business, along with their marketing mix, competitors analysis, marketing strategies and campaigns undertaken by them.
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About Reliance Industries Limited
Reliance Industries Limited (RIL) is one of India’s largest conglomerates, currently headquartered in Mumbai, Maharashtra is run under the guidance of Mukesh Ambani, who is currently the Chairman and Managing Director (MD) of the company.
It has its presence in a variety of sectors such as Oil Refinery, Telecommunications, Textiles, Retail, Media & Entertainment, Financial Services and the Software sector. Given that it has a presence in various sectors, it has about 94 subsidiaries in total.
It is one of India’s most profitable companies and is known for its stints into exploring and expanding into new ventures. Reliance’s business culture can be summed up with its tagline “Growth is Life”.
It is also one of the companies that constantly work on Corporate Social Responsibility (CSR) to empower the lives of millions of people in India. In March 2012, the American Chemistry Council accredited Reliance Industries as a ‘Responsible Care Company’.
Reliance Industries Limited is slated as one of the key driving engines that will help India reach its GDP projections in the years to come.
Target Audience of Reliance
Reliance Industries Limited caters to a wide range of consumers with its diverse range of goods and services ranging from oil-to-telecom, and even more with its retail division serving another dynamic set of customers.
Let us just take an example of Reliance Retail itself, retail goods such as apparels and groceries are a basic necessity so here it attracts all kinds of customers.
In the case of Reliance Jio, The segment that Jio has concentrated upon are people with smartphones looking for high-speed internet and good mobile services.
Reliance’s Marketing Mix
Marketing Mix is a model that helps us understand a company based on its Product, Price, Place, Promotion. This model helps us in knowing what the company has to offer at what price, where it is going to sell and the steps taken to promote the products.
In Reliance Industries Limited’s case, it has launched a wide range of products, from petrochemicals to retail to healthcare, etc. but we will understand its main businesses in this model that are,
Reliance O2C
Reliance Jio
Reliance Retail
Product Strategy of Reliance
A product is nothing but a value-adding object or innovation or service which a company sells.
1. Oil to Chemical (O2C)
Talking about the Oil to Chemical business, it includes oil refining, oil marketing and petrochemical products and services.
Simplifying things further,
Its Oil-Refining products include Refined Crude Oil
Oil-Marketing includes Petroleum Products
Petrochemicals include Polymers and Polyester Product Chains
2. Reliance Jio
Reliance Jio section offers Digital and Telecommunication services. It offers services Jio 4G Sim Cards, Jio Gigafiber, Jio Setup Box and various other value-added services.
The Value-Added Services (VAS) include Jio Cloud, Jio Security, Jio Play, Jio Cinema, Jio TV etc.
Jio also offers affordable 4G mobile phones.
3. Reliance Retail
Reliance Retail is the largest retailer in India and it has spread its outlets all across India.
The retail industry comprises Reliance New, Reliance Mart, Reliance Digital, Reliance Home Kitchen, Reliance Home Kitchen, Reliance iStore, and many more
These outlets offer various products from Groceries to Electronics to Fashion.
Price Strategy of Reliance
Price here means the price it charges for the products and services it offers.
1. Oil to Chemical (O2C)
In the O2C business, the pricing is as per the industry standards in most of the cases as it’s a Business to Business (B2B) selling.
The pricing is largely dependent upon the prices of crude oil as well as it is a key raw material in this business
The Prices are also set or agreed upon based on contractual agreements which are different from the industry pricings.
2. Reliance Jio
In the telecommunication sector, Reliance Jio implements a cost-based pricing strategy. Cost-based pricing refers to offering affordable prices so that every individual can use its offerings
Jio being the telecom sector leader it forces its competitors to charge as per their data tariffs.
It has various 4G Data Packs which helps the customer buy as per their convenience
Jio’s Giga fibres and setup box are charged as per the industry charges
Jio’s 4G Phone is priced as low as Rs. 3,000.
3. Reliance Retail
The retail division charges extremely competitive pricing.
In the groceries division, the pricing is extremely competitive but also gives out offers and discounts especially on JioMart
The pricing in the electronic division depends on the products of various companies and RIL has very little price influence on it
In the Apparel Division, prices are set as on the lines of middle-class demographics and also give out discounts and offer time to time
Place & Distribution Strategy of Reliance
Place here refers to the place the actual selling of the products and services takes. The place where the customer can buy the products.
1. Oil to Chemical (O2C)
RIL’s O2C is a completely Business to Business (B2B) entity, the place parameter is not necessarily of full importance as most of the orders and consignments are done based on their previous works
Moreover, Reliance Industries Limited has been in the business for close to 50 years now and being the largest private sector company, everyone in the O2C business knows about its work.
2. Reliance Jio
Reliance Jio has about 1700+ stores all over the country under the name of Jio Digital Stores
It also has numerous sub-partners who help customers with recharges, new sims and other services.
It is constantly working on increasing its stores all over India to increase the customer experience
It also takes online orders of the above services and provides home deliveries of the same
3. Reliance Retail
Reliance Retail operates about 12,201 stores across 7,000+ cities across India
It also takes online orders through Jio Mart and Ajio apps to provide home delivery of the products and thus making the life of customers easier
Promotion Strategy of Reliance
Promotion refers to the measures taken by the company to increase its product’s visibility and awareness so that customers can know about the products.
1. Oil to Chemical (O2C)
RIL’s O2C business doesn’t focus much on the promotion aspect as it’s a B2B entity
However, its work speaks for itself and thus facilitates healthy word of mouth promotion
Although, RIL focuses a lot on Corporate Social Responsibility (CSR) activities every year
It also recently announced that the company will bear all the vaccination costs of its employees
2. Reliance Jio
Reliance Jio has been active in promoting itself regularly through various mediums.
It has a strong social media presence and is present on Facebook, Twitter, Instagram, Linkedin and Youtube
On the offline part, it uses Newspaper and TV as the primary medium of promotions
Currently, Deepika Padukone and Ranveer Singh are its brand ambassadors
Previously, notable figures such as Amitabh Bachhan, Shah Rukh Khan have been a part of this journey
It also has a tie-up with Hotstar Disney+ which helps them in promoting themselves even better
3. Reliance Retail
Reliance Retail uses an aggressive marketing policy as it’s in a highly competitive sector.
Reliance Retail’s brands such as Ajio, Fresh, Footprints etc. have their own social media presence and are present on Facebook, Instagram, Twitter, Linkedin, Pinterest and Youtube
It also uses Newspaper and Television as a primary offline medium of promotion and also has brand ambassadors like Vicky Kaushal, Janvi Kapoor and Keerthy Suresh
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